1099K Reporting

Congress lowered the reporting threshold for 1099K reporting from $20,000 down to $600 in the American Rescue Plan of 2021.  This law requires payment processors such as Paypal and Venmo to report on Form 1099K any amounts more than $600 for each tax year starting in 2022.  In December 2022, the IRS announced a delay in the requirement of filing the Form 1099K until tax year 2023.  This does not change a taxpayer’s requirement to report all taxable income on their annual tax return.